Long-Dated Treasurys Plunge
On Fed's Inflation Assessment

NEW YORK -- Long-dated Treasurys plummeted on fears that the Federal Reserve isn't acting aggressively enough to avert a rise in inflation. But two-year notes, which often weaken quickly amid concerns about Fed policy tightening, scarcely moved, reassured by the Fed's apparent pledge to move only gradually in raising interest rates.

"The market doesn't agree with the Fed's assessment" on inflation, said Gerald Lucas, head of...